Question

Peter is a plumber employed by a major contracting firm. During the current year, he paid the following miscellaneous expenses: Unreimbursed employee business expenses $450 Union dues $600 Tax return preparation fee $100 Safe deposit box rental fee (used only for personal effects) $ 20 If Peter were to itemize his deductions for the current year, what amount could he claim as miscellaneous itemized deductions (before applying the 2 percent of adjusted gross income limitation)

Answer 1

$1,150

Step-by-step explanation:

Calculation to determine what amount could he claim as miscellaneous itemized deductions

Unreimbursed employee business expenses $450

Add Union dues $600

Add Tax return preparation fee $100

Miscellaneous itemized deductions $1,150

($450 + $600 + $100=$1,150)

Therefore the amount he could he claim as miscellaneous itemized deductions will be $1,150